FX.co ★ Wheat Futures Rebound From Two-Month Lows

Wheat futures rose to $6.00 per bushel, rebounding from a two-month low reached on June 15, as investors monitored Northern Hemisphere harvests and awaited US planting data due later this month. Although crude oil’s slide to three-month lows—following a preliminary agreement to end the US-Israeli war on Iran—has weighed on grain markets, traders are evaluating whether lower prices might stimulate additional demand from importers. Weather has also been a key factor: widespread rainfall and warm temperatures across the central US have supported crop development and strengthened expectations of abundant global supply. The USDA reported that 55% of the US spring wheat crop is in good-to-excellent condition, up 3 percentage points from the previous week but still below the level seen at the same time last year. At the same time, drought-strained winter wheat, while still rated near historic lows, showed a modest week-on-week improvement, with harvest progress running ahead of earlier projections.